Page 65 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Report Statutory Reports Financial Statements
1-59 Board's Report 147-300

Subsidiary and ` 26 crore (FY 2019-20: ` 72 crore) respectively to the
Agri Sciences - Rallis India Limited (‘Rallis’) Company. Valley Holdings Inc., the Company's step-down
(as per TCL consolidated books) overseas subsidiary, which holds investments in the US
operations, paid a dividend of US$ 20.9 million (` 155 crore)
Rallis is the Company’s listed subsidiary focussed on specialty [FY 2019-20: US$ 30.1 million (` 214 crore)], which was utilised
products for the farm and agriculture sector consisting for operational requirements, external finance costs and
mainly of Crop Care and Seeds. During FY 2020-21, Rallis capital funding requirements at Tata Chemicals International
achieved a consolidated revenue from operations of ` 2,424 Pte. Ltd., Singapore and other group companies.
crore in FY 2020-21 compared to ` 2,248 crore in FY 2019-20,
an increase of 8%. The net profit after tax stood at ` 229 crore, There being no change in the credit ratings during the year,
higher by 24% as against a net profit after tax of ` 185 crore the Company as on March 31, 2021 had the following credit
in FY 2019-20. ratings:
During FY 2020-21, the Domestic business of Rallis achieved – Long Term Corporate Family Rating – Foreign Currency
a revenue of ` 1,287 crore as against ` 1,165 crore in of Ba1/Stable from Moody’s Investors Service
FY 2019-20, an increase of 10% on account of robust farm
demand. Key crops which have shown major growth are – Long Term Issuer Default Rating (IDR) of BB+ with
Paddy, Cotton, Sugarcane, Soybean, Pulses, Chilli, Tea, Stable outlook from Fitch Ratings
Tomato and Grapes. Due to Covid-19 and labour shortage,
the demand for herbicide products also increased. – Long Term bank facilities (fund-based limits) of
` 1,897 crore and short term bank facilities (non-fund
During the year under review, the International business of based limits) of ` 2,448 crore are rated at CARE AA+
Rallis achieved a revenue growth of 3% over the previous year (Outlook: Stable) and CARE A1+ respectively, by CARE
at ` 741 crore as against ` 722 crore in FY 2019-20. During Ratings and
the year under review, Rallis secured new registrations in
strategic overseas markets. – Commercial Paper of ` 600 crore is rated at CRISIL A1+
by CRISIL Ratings
During FY 2020-21, the Seeds division of Rallis delivered
a revenue of ` 401 crore as against ` 364 crore during Upon refinancing of the loan facility at Tata Chemicals North
FY 2019-20, an increase of 10% driven by volume growth in America, Inc. during June 2020, the existing credit ratings
Maize & Vegetables and price increase across the categories. being no longer needed were discontinued.
Overall, the focus remains to deliver growth through new
product introductions, deepening customer reach and 7. Dividend Distribution Policy
increasing international registrations. In accordance with Regulation 43A of the SEBI Listing
Regulations, the Board of Directors of the Company has
6. Finance and Credit Ratings adopted a Dividend Distribution Policy (‘Policy’) which
During the year under review, the liquidity and cash endeavours for fairness, consistency and sustainability while
positions were monitored with reinforced focus and close distributing profits to the shareholders. The Policy is attached
controls over the working capital and discretionary capital to this Report as Annexure 1 and the same is available on
expenditures. Earnings from the cash surplus investments, the Company’s website at https://www.tatachemicals.com/
comprising mutual funds/bank fixed deposits/debentures DividendDistPolicy.htm.
(bonds) during the year saw a reduction due to the drop in
the market interest rates. Nevertheless, utmost importance 8. Transfer to Reserves
was given to ensure the safety and liquidity of surplus cash.
The Board of Directors has decided to retain the entire
Amid a particularly volatile global financial market in amount of profits for FY 2020-21 in the retained earnings.
FY 2020-21, the overseas subsidiaries of the Company
concluded refinancing agreements of US$ 100 million in 9. Responding to an unprecedented challenge:
Valley Holdings Inc., US$ 275 million in Tata Chemicals The Covid-19 pandemic
North America, US$ 45.5 million in Homefield Pvt. UK Limited FY 2020-21 was an unprecedented year with Covid-19
and £ 55 million in British Salt Limited. pandemic impacting the globe and global supply chains,

During FY 2020-21, Rallis, a subsidiary and IMACID, a joint amidst biggest global health crisis ever faced by the world.
venture paid dividends of ` 24 crore (FY 2019-20: ` 24 crore) The uncertainty around the resurgence of second wave

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